Lloyds Banking Group response to the Help to Save and Lifetime ISA budget announcements:
Stephen Noakes, Managing Director, Retail Customer Products said: “As part of our Helping Britain Prosper Plan, we are committed to supporting people to save and as such we are keen to explore new ways to help people make the most of their money. Saving can be particularly difficult for young people and those on low incomes, so we look forward to engaging through the consultation to ensure that Help to Save and the Lifetime ISA offer a genuine solution to as many people as possible.”
David Brooks, Technical Director at Broadstone, comments on George Osborne’s introduction of a Lifetime ISA:
“The Lifetime ISA, with a combination of pension and mortgage saving, sounds like a very interesting idea but is surely the thin end of the wedge. With the age of 40 set rather arbitrarily it isn’t hard to see (if successful and with high take up) that it couldn’t be opened up to all savers in due course. However, the Government will want to be wary of wealthy pension savers already maxed out on existing allowances using it to squirrel away more money and so perhaps some form of exemption will need to be established.
“It doesn’t seem to tick the box of saving much in tax relief but as a move to shake up the pensions industry for the future, George has certainly laid his cards on the table. The future is Pension ISA.
“Great news for pension providers – a savings boost will help their bottom line as pension freedoms sees large payments going out at the other end (the retirees).”
Mark Holweger, Managing Director, Partnerships, Legal & General comments on the 2016 budget and the rise in IPT
“Another increase in IPT so soon after the last rate hike will ultimately impact the customer. Whilst a highly competitive market has meant that insurance premiums have been relatively low recently, with IPT rates rising again insurers will have no choice but to pass this cost onto consumers.
Improving flood defences across the UK is certainly important, so we welcome extra revenues being diverted to that cause. As an industry we’ve benefited from several years worth of benign weather conditions, with the flooding we saw in 2015 more representative of a normal year. It is therefore vital that insurance companies are pricing for long term weather events.
Whilst the increase in IPT is not as steep as many feared, it is paramount that the Government and the insurance industry work together to insure that people aren’t dissuaded from taking out policies, and the UK doesn’t become a nation at risk of being under-protected. ”
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